CGF Seminar - Subordinate Financialisation & Distinct Patterns of Instrumentalising Banking Sector

Описание: This seminar was delivered on Wednesday, 17 January 2024 as part of the CGF Seminar series 2023-2024

Full Title: Subordinate Financialisation and the Distinct Patterns of Instrumentalising the Banking Sector in Turkey and Hungary

Presenters: Dr. Mehmet Kerem Coban, SOAS University of London; Dr. Dora Piroska, Central European University, Vienna; Dr. Fulya Apaydin, IBEI, Barcelona

Chair: Prof. Victor Murinde, SOAS University of London

Abstract:

Shallow financial markets and subordinate position in the global financial hierarchy locate the local banking sector in emerging capitalist economies at the centre of the domestic financial ecosystem. This paper studies the trajectory of the relative position and the role of the domestic banking sector in Hungary and Turkey where Orban and Erdogan have made various attempts to control politically the banking sector. The paper argues that both leaders have instrumentalized the banking sector to sustain economic growth and serve their political and economic constituencies. Yet instrumentalization occurred through two distinct patterns: Orban instrumentalized the banking sector for fiscal policy purposes, while Erdogan did so to ensure partisan business access to cheap credit. These distinct patterns reveal varying means and strategies of authoritarian regime survival that is subject to the constellation of coalitional politics and subordinate position in the global financial hierarchy.